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Return on investment and Economie Value Added Calculations with varying Assumption Kniple Droducts is a division of Parker Textiles Inc. During the coming year it

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Return on investment and Economie Value Added Calculations with varying Assumption Kniple Droducts is a division of Parker Textiles Inc. During the coming year it expects to earn income of 5310.000 based on sales of $3.45 million. Without any new Investments, the division will have average operating 3. The division is considering a capital investment project-adding knitting machines to produce gaten-that requires an additional investment of $650.000 and increase income by $7.500 (es weud by $575.000) of made the livestment would increase beginning operating assets by 5630,000 und ending operating site by $450,000. Assume that the actual con el capital for the companys Required: 1. Compute the Rol for the division without the investment. Round your answer to two decimal places 2. Compute the main and turnover is without the investment Show the product of the main and turnover is equals the Old weet 1. Round your step Margin Turnover ROL 3. Conceptual Connection Compute the Rol for the division with the fund your compa Do you think the manage the Spor 4. Col Comte the armeverter > Concept Canotheme SAM hop 1. Compute the ROI for the division without the investment. Round your answer to the decimal places. 2. Compute the margin and turnover ratios without the investment. Show that the product of the margin and turnover ratios equals the Of computed in Requirement 1. Round your answer to Margin 9 Turnover ROI 9 3. Conceptual Connection: Compute the ROL for the division with the new investment. Round your avec to one decimal place 196 Do you the dional manager will approve the investment? 4. Conceptual Connection Compute the margin and turnover ratios for the division with the wavestment Round your ass to the decimal places. How do these compare there? 46 Maro Turnover 5. Conceptual Connection: Compute the EVA of the division with and without the resment EVA without the investment Eva with the met Showice manage des de toile the machine verme O hp

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